Answer: It is important because an employee needs to have other rights beyond a salary.
Explanation: Although it is true that a person who applies for a job in return receives a salary, many times the work to do for the development and well-being of the company is greater than what he receives. Many people work tirelessly so that the place where they are working can continue to function properly. In many cases, the salary you receive is a salary that may be little and that does not compensate for many things. The benefits give the employee the opportunity to enjoy certain things and thus lighten the burden of him since not everything has to come from salary.
<span>B. When the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.</span>
Informal corporate culture
-> organisations that value egalitarianism of ppl/ less power distance/ most manager discuss decisions with colleague
-> i think partnership and sole trader since tis kidda businesses have limited no of ppl
Answer:
a. Analytical review of loan agreement.
Inquiry from management about the loans and its covenants.
Observing the management behavior towards covenants.
Inspecting the effects of each covenant on business activities.
b. According to IAS 24, related party transactions the loan from president should be disclosed.
Explanation:
Loans are a source of funding to a business. Many organizations prefers high debt funding as it is a cheap source of finance. On the other hand high debt companies are considered as risky. When an auditor analyses the loan covenants he must ensure that he reads the complete agreement and analyses the effects that each covenant has on the company's performance. Loan covenants are always considered as flagged as this is an important area which requires detailed audit. In the given scenario the loans are taken against company's inventory and receivable accounts which is a threat to company's working capital. There are covenants imposed not to distribute any dividend to shareholders. These will create a liquidity position for a company if the loan is not paid on time and company will not have sufficient amount of working capital to fund its routine expenses and business operations.
b. IAS 24 provides detailed guidance on discloses for transaction involving related party. The president of a company has provided loan to the company this should be disclosed in the notes. The transaction should be in the arms length and disclosures should be made for every transaction.
Answer:
one that implements homogeneous practices across countries.
Explanation:
The process of trading across the national boundaries are said to be an international business. The business process like trading of the good and services and the process of technological and capital investment globally fall under the practice of international business. The transactions of the goods and services are practiced across the borders. Globalization is another term of international business.
